DHBs on notice over financial performance

“In our first budget we invested $2.2 billion more in DHBs over four years – the biggest increase in operational funding in the last decade. Another $750 million was put into capital works in health. However, we always knew it would take more than one budget to address the legacy of underfunding.

“This government will continue to invest more in health so DHBs can continue to deliver the quality services the public expect and deserve. But DHBs must also spend every health dollar wisely.

“It is clearly challenging for DHBs to improve their financial position while at the same time introducing new ways of working to improve access to services. Some DHBs are managing that transition better than others.

“At the end of last year I wrote to all DHB chairs expressing my disappointment with their collective financial performance. It is not acceptable to see some DHBs forecasting deficits to continue for years to come.

“In that letter I made it clear I am monitoring the performance of all DHBs closely and will consider a range of options to improve performance if necessary, including changes to the membership of boards. I also raised these matters directly with board chairs and chief executives last week.

“The government is managing significant cost demands after nine years of underfunding across the board, but we are prudently managing the books and running a surplus. We expect DHBs to display the same sort of financial discipline,” Clark said.